LPL Financial Closes Acquisition of Crown Capital Securities

Rhea-AI Summary

LPL Financial has successfully completed the acquisition of Crown Capital Securities, a wealth management business, enhancing its advisor-first focus and expanding its specialized services. Approximately $1.3 billion of assets have been onboarded, with $3.7 billion more expected in the coming months.

Positive

• Enhanced advisor-first focus and specialized services through the acquisition

• Successful onboarding of approximately $1.3 billion of assets

Negative

• None.

Insights

Financial Analyst

The acquisition of Crown Capital Securities by LPL Financial represents a strategic expansion in LPL's brokerage and advisory services. By onboarding $1.3 billion in assets and approximately 125 advisors immediately, LPL has bolstered its market presence and capabilities. The gradual integration of the remaining $3.7 billion in assets will require careful monitoring to minimize potential disruption to client services and ensure a smooth transition. The long-term synergy between LPL's innovative platform and Crown Capital's advisor network could potentially offer enhanced services for clients and may lead to increased efficiencies within LPL's operations. LPL's stock could see positive movement based on the anticipated growth and expanded financial services offerings. However, investors should be mindful of the costs associated with acquisitions and keep an eye on future earnings reports to assess the financial impact of the integration.

Market Research Analyst

This acquisition indicates LPL Financial's commitment to growth and presents opportunities to access a wider client base in Orange County, a region with significant wealth management potential. It suggests a trend towards consolidation in the financial advisory industry where larger firms seek to enhance their national footprint. With Crown Capital's focus on independence for financial advisors aligning with LPL's advisor-first approach, this could lead to higher advisor retention and satisfaction rates. For investors, a successful acquisition that leads to a more competitive position in the market could signal a positive outlook for LPL's future performance. It might also hint at potential market consolidation trends, influencing investment strategies in the wealth management sector.

SAN DIEGO, May 08, 2024 (GLOBE NEWSWIRE) -- LPL Financial LLC (“LPL Financial” or “LPL”) announced it has closed its acquisition of the wealth management business of Crown Capital Securities, L.P. (“Crown Capital” or “Crown”) a full-service broker-dealer and registered investment advisor (“RIA”) headquartered in Orange County, California. 

"We continue to be impressed with Crown Capital's growth mindset and deep commitment to the value of independence for financial advisors," said Rich Steinmeier, LPL Financial managing director and divisional president, Business Strategy & Growth. "Through LPL's advisor-first focus and by leveraging our innovative platform and specialized services, the high-performing advisors at Crown Capital Securities are even better positioned to scale their thriving businesses."

“Since the inception of Crown Capital Securities, our ambition has been to offer best-in-class experiences to our advisors built upon our unique family culture and their clients while sustainably growing our business for the future,” said Jonathan L. French, Crown Capital president and chief marketing officer. “Through LPL, we can take both goals to the next level. I am extremely proud of our accomplishments and am excited about this next chapter of our journey.” 

As of May 8, 2024, approximately $1.3 billion of brokerage and advisory assets served by approximately 125 advisors have been onboarded to LPL. The remaining approximately $3.7 billion of assets are expected to onboard over the next several months.

About LPL Financial  

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that LPL should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve, serving nearly 23,000 financial advisors, including advisors at approximately 1,100 institutions and at approximately 570 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional. At LPL, independence means that advisors and institution leaders have the freedom they deserve to choose the business model, services and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors and institutions, so they can take care of their clients. 

Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States.   

Crown Capital Securities and LPL Financial are separate entities.  

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.  

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.  

Forward-Looking Statements

Certain of the statements included in this release, such as those regarding LPL’s and Crown’s future operating results, growth and plans, including potential levels of assets serviced and the onboarding of advisors, staff and assets, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on current expectations and beliefs concerning future developments and their potential effects upon LPL, Crown or both. In particular, LPL can provide no assurance that the assets reported as serviced by Crown financial advisors will translate into assets serviced at LPL, or that Crown financial advisors will join LPL. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, and there are certain important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties or delays of LPL in onboarding Crown financial advisors, staff or clients, which could negatively affect LPL’s ability to realize revenue or expense synergies or other expected benefits of the transaction; the inability of LPL to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transaction, which depend in part on LPL’s success in onboarding assets currently served by Crown’s advisors; disruptions to Crown’s or LPL’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with their financial advisors and their clients, employees, other business partners or governmental entities; the choice by clients of Crown’s advisors not to open brokerage and/or advisory accounts at LPL or move their assets from Crown to LPL; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; and the effects of competition in the financial services industry, including competitors’ success in recruiting Crown’s advisors. Certain additional important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements can be found in the “Risk Factors” section included in LPL’s most recent Annual Report on Form 10-K. Except as required by law, LPL does not undertake to update any particular forward-looking statement included in this document as a result of developments occurring after the date of this press release.

Contacts 
Media Relations 
media.relations@lplfinancial.com 
(706) 254-4100 

Investor Relations 
investor.relations@lplfinancial.com 
 
Tracking #574709

FAQ

What acquisition did LPL Financial close recently?

LPL Financial closed the acquisition of Crown Capital Securities.

Where is Crown Capital Securities headquartered?

Crown Capital Securities is headquartered in Orange County, California.

How much brokerage and advisory assets have been onboarded by LPL Financial as of May 8, 2024?

Approximately $1.3 billion of assets have been onboarded by LPL Financial.

How many advisors are serving the onboarded assets?

Approximately 125 advisors are serving the onboarded assets.

What is the total expected amount of assets to be onboarded by LPL Financial in the near future?

The remaining assets of approximately $3.7 billion are expected to be onboarded over the next several months.